North India’s real estate sector is currently facing a major crisis as the once-prominent name, Supertech Group, is now struggling with serious financial difficulties. The two major companies of the group, Supertech Realtors Private Limited and Supertech Township Projects Limited, have been declared insolvent by the National Company Law Tribunal (NCLT). This has created a new problem for the thousands of investors of these companies as the distribution of their resources will now be decided among the creditors.
The order issued by NCLT against Supertech Realtors and Supertech Township Projects has put an end to all cases against these companies in progress in the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) or any other court. Now, the investors who have purchased property from these companies will have to present their claims to the Insolvency Resolution Professional (IRP) appointed by NCLT.
Supertech Realtors Private Limited was constructing the tallest residential building in North India, Supernova, in Noida. The prices of homes in this project ranged from 5 crore to 20 crore rupees. This has come as a big blow to the thousands of people who had purchased property in all phases of this project. Similarly, Supertech Township Projects Limited was constructing the Golf Country Housing Project, which was also divided into four phases. The allottees of this project will also have to knock on the door of IRP under the orders of NCLT.
The chairman of Supertech Group, R.K. Arora, has been facing difficulties as he was arrested by the Enforcement Directorate (ED) almost a year ago. He was recently released on bail. Several cases are ongoing against R.K. Arora, including fraud, embezzlement, diversion of investors’ money, and money laundering. A decade ago, Supertech Company was among the top three real estate companies in the country, but due to serious financial errors, this situation has arisen today.
Real estate experts believe that the dire situation of Supertech Group is a result of R.K. Arora and his associates’ wrong financial policies and negligence towards investors. The continuous decline of the group’s business empire has become a major concern not only for them but also for their investors. ЁЯПЧя╕ПЁЯПвЁЯПаЁЯУЙЁЯУК
In conclusion, the crisis faced by Supertech Group serves as a cautionary tale for the real estate industry and highlights the importance of prudent financial management and transparency in dealings with investors.
